Back in 2009, when Facebook was all the rage and smartphones just starting to gain popularity, another trend rose to the surface – a new cash system that promised to replace standard currencies and eliminate the need for banks and governments in any transactions. This system was called bitcoin.
Since then, bitcoin has made a name for itself in the world of technology and business, and itâ€™s been called the â€œfuture of moneyâ€ on more than one occasion. Nowadays, more and more people are using it to shop for various goods and services, and there is a large number of digital currency exchanges out there where you can easily buy and sell your bitcoin.
If youâ€™re not really familiar with bitcoin, cryptocurrencies, and blockchain, you might be wondering: how did this system become so popular in the last couple of years? What is its secret? Well, bitcoin offers a couple of great advantages in contrast to the traditional cash system, one of them being decentralization (no need for intermediaries) which we mentioned above.
Another lies in the fact that it operates on peer-to-peer technology called blockchain, which makes all transactions incredibly secure. The gist of it is this: if you want to buy something, all other members in the bitcoin network need to verify your transaction first in order for it to be approved. That way, the system avoids fraud, double-spending, and any possible misuse.
Last but not least: bitcoin is stored in digital wallets, which basically function like locks. Each wallet comes with a public and private key – the former represents your address in the wide bitcoin network, while the latter unlocks your funds, which means that youâ€™re the only one who can access them.
Of course, there are plenty of more reasons why this revolutionary cash system has become a favorite in the world of tech, so if you want to learn more about bitcoin, its history, and fun facts, make sure to take a look at our infographic. Youâ€™ll have the bitcoin basics down in no time.